So we have been told that we are to measure our employees based on Red, Yellow Green and a scale of 1-10.

I have been searching to find out more about this technique but have come up empty for the most part.

It would be nice to know the basis for the ratings, etc. 


Any ideas?

jhusk's picture
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There are a number of companies who use similar ratings systems, typically with the intent of creating a bell curve with respect to performance. The higher contributors (green in the red-yellow-green approach) should be receiving the highest raises and bonuses, with the reds receiving little or none of these. The middle receives avg increases. My experience with this is that the top and bottom are about 10% each, and the middle is 80%. This keeps the high performers motivated and rewarded, and gives a clear message to the bottom performers that their rules need to increase or they need to be looking for another organization.

I have not done so, but a quick search on General Electric Employee Rating should give you some leads into learning more about this system.